XL Group Ltd

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XL : NYSE : Financial
$36.58 up 0.18 | 0.49%
Today's Range: 36.49 - 36.695
Avg. Daily Volume: 2196800.0
12/08/16 - 9:47 AM ET

Financial Analysis


XL GROUP LTD's gross profit margin for the third quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.73% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)2575.962573.42
EBITDA ($mil)247.77185.0
EBIT ($mil)220.4163.68
Net Income ($mil)70.627.28


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)6489.236520.54
Total Assets ($mil)60772.0560416.52
Total Debt ($mil)2647.02726.92
Equity ($mil)11612.1711938.23


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin9.627.19
EBITDA Margin9.617.18
Operating Margin8.566.36
Sales Turnover0.170.13
Return on Assets0.61.85
Return on Equity3.149.36
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.190.19
Interest Expense49.4551.93
Interest Coverage4.463.15


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)270.37299.32
Div / share0.20.2
EPS0.250.09
Book value / share42.9539.88
Institutional Own % n/a n/a
Avg Daily Volume2252576.02454576.0

Valuation


BUY. XL GROUP LTD's P/E ratio indicates a premium compared to an average of 27.67 for the Insurance industry and a premium compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 0.87 indicates a significant discount versus the S&P 500 average of 2.79 and a discount versus the industry average of 1.56. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
XL 30.28 Peers 27.67   XL 13.35 Peers 13.95

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

XL is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

XL is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
XL 10.37 Peers 16.47   XL NM Peers 1.14

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

XL is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

XL's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
XL 0.87 Peers 1.56   XL -68.22 Peers -6.60

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

XL is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, XL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
XL 0.98 Peers 1.36   XL 27.49 Peers 9.31

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

XL is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

XL has a sales growth rate that significantly exceeds its peers.

 

 

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